South African Truck Hire Startup Nets Multimillion Rand Investment

Droppa, a Pretoria based on-demand platform for trucks and bakkies, has secured a multimillion-rand investment from SA investor IDF Capital. Droppa CEO Khathutselo Mufamadi founded the startup in 2016. The deal was concluded in mid-November, but Mufamadi did not want to disclose the investment amount. When pressed by Ventureburn, Mufamadi said IDF Capital’s investment was above R5 million.

Droppa levies a 15% commission on whatever bakkie and truck operators using the platform charge the end customer. Drivers using the platform charge between R300 and R2000 per load, with the charge depending on the size of the load.

About 300 drivers, from the Western Cape and Gauteng (where the startup currently operates), are currently signed up to the platform. In all, drivers have completed over 2000 trips since the platform went live in May last year, Mufamadi said.

He said with the current funding injection, Droppa, which currently has 10 permanent staff, plans to expand to more cities across South Africa including Durban in the first quarter of next year and Port Elizabeth in the first half of next year.

Original article compiled by Ventureburn

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